Egypt has secured significant financial support from major European and international development institutions for its groundbreaking Obelisk solar and battery storage project, marking a major milestone in the country’s clean energy transition.
In early January 2026, the European Investment Bank (EIB), through its development arm EIB Global, committed $150 million in financing to the project, coinciding with the inauguration of the plant’s first phase in Qena Governorate in southern Egypt.
The Obelisk project, developed by Norwegian renewable energy developer Scatec ASA, is poised to become Africa’s largest hybrid solar photovoltaic (PV) power plant with integrated battery energy storage.
The plant will eventually boast a capacity of 1.1 GW of solar generation and a 100 MW/200 MWh battery energy storage system (BESS), capable of delivering reliable clean electricity even after sunset.
European and Global Financial Support
The EIB’s $150 million contribution represents a major vote of confidence from Europe in Egypt’s renewable energy ambitions.
In addition to the EIB’s backing, earlier financing arrangements for Obelisk involved a consortium of development banks including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the British International Investment (BII).
Together, these lenders provided a combined financing package of approximately $479 million, covering approximately 80 % of the project’s total estimated cost of around $590 million.
The EBRD’s support included equity bridge financing as well as project loans that helped bridge funding gaps during construction, while the AfDB contributed a significant funding package to ensure project viability and sustainability.
This coordinated financing structure reflects a broader European strategy — often referred to as Team Europe — in which multiple European development financial institutions collaborate to mobilize capital for strategic infrastructure projects in partner countries.
Beyond capital, this approach integrates risk mitigation and technical support, strengthening the overall investment profile.
Strategic Importance for Egypt
The Obelisk project aligns closely with Egypt’s ambitious renewable energy targets. The country aims to increase the share of renewables in its electricity mix to 42 % by 2030, a key element of its energy transition plan.
A reliable solar plant with battery storage is critical to this goal, helping to address variability in renewable power generation and reducing reliance on fossil fuels.
When fully operational, Obelisk is expected to supply clean power to millions of households, enhance grid resilience, and contribute toward reducing carbon emissions by millions of tonnes annually.
The battery storage component also enables more consistent energy delivery during peak demand periods, making the plant an essential asset for Egypt’s energy infrastructure.
Regional and Economic Impact
Local authorities and the Egyptian government have emphasized the project’s broader economic benefits.
The construction and operation of Obelisk are expected to create thousands of jobs, contribute to local economic activity in Upper Egypt, and build technical expertise in both renewable generation and energy storage technologies.
Prime Minister Mostafa Madbouly attended the inauguration ceremony for the first phase, underscoring the government’s commitment to accelerating renewable energy development.
Looking Ahead
With European backing playing a central role in financing and de-risking the project, Obelisk represents a key example of how international cooperation can accelerate clean energy deployment in emerging markets.
As other regions look to replicate similar hybrid solar–storage initiatives, Egypt’s model offers lessons in aligning strategic finance, policy support, and private sector participation to drive sustainable growth.
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